Activision Blizzard reveals that it has made nearly $1 billion from microtransactions in Q1 2020, which ended on March 31, 2020. Activision is one of several tech companies to benefit as more people stay home playing games and streaming content because of COVID-19.
In its new financial report, Activision Blizzard revealed that it recorded "in-game net bookings," or microtransactions, of $956 million. This is a huge increase compared to the $794 million that the company made in the first quarter of 2019.
A large reason for this microtransaction growth is Call of Duty: Modern Warfare and free to play title Call of Duty: Warzone. Call of Duty: Modern Warfare sold more copies thanks to the release of Warzone on March 10, 2020, which will have increased microtransaction sales in its multiplayer mode. Warzone's microtransactions, which were praised in reviews as being unobtrusive, are for cosmetic items such as characters and gun skins.
However, it isn't just Call of Duty that players have been spending huge amounts of money on. Activision also confirmed that it has seen higher engagement in games like Overwatch, World of Warcraft, and Candy Crush Saga, which it has owned since it purchased developer King in 2016. In Q1 2020, Candy Crush players played more rounds in the series than in any quarter since the King acquisition was completed.
The strength of Overwatch could have been because of the Overwatch League, which has shifted to online matches as COVID-19 means that games cannot be played in person. Fans may be enjoying watching the game and have chosen to play more it, though it's just as likely that COVID-19 is keeping Overwatch players online and logged-in.
Activision will surely feel incredibly positive about these figures. It means that Overwatch engagement is going strong leading into Overwatch 2, which is rumored to release this year, and suggests that there are ways to sustain a Call of Duty game months after release. In 2019, it had seen lower engagement for Blizzard Entertainment titles but it seems that COVID-19 has helped the developer to bounce back.
It's unclear what this may mean for Activision's game development plans. The company's aim has long been to release live service games that keep people playing for months and years after release. It has also filed several microtransaction patents as it tries to get players spending more. These increase Q1 2020 microtransaction earnings are unlikely to change much, only confirm how much money this type of spending can make.
Source: Activision